Connaught Plaza Restaurants, which runs McDonald’s in north and east India, plans to invest about $80 million over the next two and a half years. The Economic Times reported the plan on 2 November 2026, citing chairman Sanjeev Agrawal. The money will go into new stores and digital systems, and the paper calls it the operator’s largest investment over such a period. The firm had earlier planned close to $100 million over four years. It now runs more than 320 stores and aims for more than 500 by 2028.
The new stores will include drive-throughs, highway outlets and sites at government-run fuel stations. The Economic Times reports that the operator has invested $175 million so far, with funding from family offices, since MMG Group acquired it in 2020. It targets revenue of ₹2,000 crore in FY27, up from ₹1,695 crore in FY26, with a 12% EBITDA margin, meaning earnings before interest, tax, depreciation and amortisation. Costs for oil, transport and packaging have risen because of the West Asia crisis. The company plans small price rises on select items.
Our view is that this is a bet on highway and fuel station traffic, where rents are lower and footfall grows with car travel. Highway dhabas and small food courts lose the most, while fuel station owners gain a branded anchor tenant. Coverage has not said how many of the new stores will be franchised or company owned, which affects how fast the plan can move. Devyani International and Burger King have also pushed drive-throughs and highway formats in recent years. Rising input costs make small price rises likely across quick service chains, not only McDonald’s. We expect the operator to cross 400 stores by December 2027 and to announce a fuel retailer partnership within six months. Confidence: medium.
This is important for our readers because a large chain is moving into highway and fuel station sites that many local operators rely on. If you run a highway restaurant, review your menu prices against branded rivals this week. If you own land on a national highway in north or east India, consider approaching quick service chains with a lease offer. Check your packaging and transport contracts for cost pass through clauses.
Sources:
The Economic Times, 2 Nov 2026
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